Adidas may lose 1.2 billion euros (roughly $1.3 billion) in revenue due to its inability to sell its existing Yeezy stock.
The company disclosed its financial difficulties on Thursday (February 9). Adidas admitted it’s struggling after cutting ties with Kanye West over his antisemitism.
“The numbers speak for themselves,” the company’s CEO Bjørn Gulden said in a press release. “We are currently not performing the way we should. 2023 will be a year of transition to set the base to again be a growing and profitable company.”
Gulden added, “Adidas has all the ingredients to be successful … We need to put the pieces back together again, but I am convinced that over time we will make Adidas shine again. But we need some time.”
Adidas dropped Kanye West in October 2022, ending a nine-year partnership. The company declared it didn’t tolerate antisemitism or hate speech in response to Ye’s offensive remarks.
“Ye’s recent comments and actions have been unacceptable, hateful and dangerous,” Adidas announced. “And they violate the company’s values of diversity and inclusion, mutual respect and fairness. After a thorough review, the company has taken the decision to terminate the partnership with Ye immediately, end production of Yeezy branded products and stop all payments to Ye and his companies.”
Adidas maintained the design rights to existing Yeezy products. Ye maintained the trademark to the Yeezy brand.